Surprising districts gain ground on Budapest property market as prices hike again

Budapest’s property market has undergone a noticeable transformation over the past year, with buyer preferences increasingly favouring greener, more liveable districts. According to recent market data, the city’s traditional hierarchy has shifted, even though the 13th district has managed to retain its position as the most sought-after area.

The growing appeal of the 2nd and 12th districts highlights a clear trend: homebuyers are placing greater value on access to green spaces and a quieter environment. In contrast, several inner districts on the Pest side, along with Újbuda (11th district), have slipped down the rankings. The enduring popularity of the 13th district is largely attributed to its excellent transport links and well-developed infrastructure, which continue to attract a broad range of buyers.

Rising prices change buyers’ minds

Property price increases have played a significant role in reshaping demand. In some districts, rapid price growth has begun to limit affordability, narrowing the pool of potential buyers. This is particularly evident in the 11th district, where strong demand for new-build homes has driven prices higher, ultimately cooling interest. Market analysts note that such trends are a natural correction: when prices rise beyond what buyers can realistically afford, demand tends to ease, slowing further growth.

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Property price growth accelerates across the whole country

Meanwhile, the pace of house price growth picked up again in March. Nationwide, prices rose by 2% month-on-month, compared to 0.8% in February. In Budapest, a slight decline in February was followed by a 1.1% increase in March. Year-on-year, property prices climbed by 15.8% across Hungary, while the capital saw a more moderate 13.7% increase. Experts suggest that Budapest’s slower annual growth is partly due to its already high price levels, as well as policy measures such as the HUF 1.5 million per square metre price cap under the Otthon Start programme.

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Expanding supply may ease pressure

Another key development is the sharp rise in housing supply. Listings in Budapest have increased by around 25% over the past year, with particularly strong growth in the market for second-hand flats. At the same time, demand has weakened both monthly and annually, signalling a gradual shift towards a more balanced market. As supply continues to expand, competition among sellers may intensify, potentially slowing price growth and giving buyers greater negotiating power in the months ahead.

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Featured image is illustration. Source: depositphotos.com